Cut down timber laws, inquiry told

Page Tools

Industry wants to cut down to size regulatory control, which it says is impeding regional development.Photo: Joe Armao

Too much regulation is getting in the way of a bigger
contribution from Victoria's $1.8 billion timber industry to
regional development, the Victorian Association of Forest
Industries has told a government inquiry.

The association said the industry had to comply with more than
30 state and federal acts and regulations.

"The sheer weight of regulatory control . . . is an impediment
to regional development," VAFI said in a submission to the
Victorian Competition and Efficiency Commission. "It delays
decisions, makes compliance difficult, and retards investment."

The commission is conducting an inquiry into regulatory barriers
to regional economic development. A draft report is due by the end
of the year.

VAFI said it was not suggesting that the industry should be free
from regulatory restraint. "The community demands a high level of
surety that its forests are being protected," it said. "However,
policymakers need to be aware of negative consequences of such an
extensive and multi-layered regime."

VAFI said mooted regulatory changes would further undermine
regional development. These changes included the "forest park"
concept, water rights on plantations, and a narrow definition of
conserving forest values through new national parks in East
Gippsland and along the Murray River.

VAFI said the recent split of responsibilities for forest
management and selling timber between the Department of
Sustainability and Environment and VicForests had added new
complications for the industry.

VicForests can only sell timber under a plan approved by DSE,
which draws out the bureaucratic process. However, if any timber
was burnt in a bushfire outside any release plan, DSE approval was
needed to make it available to harvest.

"Additionally, when DSE was responsible for all issues, the DSE
regional manager had the discretion to authorise up to 100 hectares
of fire salvage," the submission said. "This discretion has been
lost with the division of responsibilities."

VAFI said much time elapsed between the end of the 2003 fires
and the start of salvage harvesting when only one organisation was
involved. The risk of delay and big economic loss even for
relatively small fires under the new arrangements had to be
considered.

"At present, VicForests' planned approach is to simply place
bushfire, whatever the cause, as a force majeure in its timber
supply contract with timber purchasers," VAFI said. "This might
relieve VicForests of any obligations but does little to foster
investment in the industry."